Cost of Homeownership USA: Income Needed vs. What Households Make

Buying a home in America increasingly feels like a math problem that doesn’t add up.

Home prices are still high. Mortgage rates remain elevated. And for millions of households, incomes simply haven’t kept pace.

To understand how wide that gap really is, we looked at what it actually costs to buy a typical home in every U.S. state and then compared it to what households actually earn.

In the latest edition of Profit Trends, we dug into the data to see where homeownership is still within reach — and where the numbers are pushing it further out of sight. The results reveal a striking divide between states where incomes still cover the cost of buying a home and those where the gap has grown too wide to ignore.

Some states may surprise you. Others may confirm what homeowners and buyers have been feeling for years. Read on to see how your state stacks up.

What the Data Reveals
Top and Bottom of the List
The 10 Least Affordable States for Homebuyers
The 10 Most Affordable States for Homebuyers
Looking For a Way to Bridge the Gap?

1. What the Data Reveals

We based our findings on a 16% down payment and a 30-year fixed-rate loan, using average interest rates. Data was collected from Zillow to determine average home values, and Zillow’s mortgage calculator was used to estimate monthly mortgage payments.

Our analysis shows that in 30 out of 50 states, the median household income is not high enough to afford the average home value under the widely used “30% rule,” which recommends spending no more than 30% of gross income on housing.

Most Affordable States

Least Affordable States

2. Top and Bottom of the List

The Least Affordable

Hawaii stands out as the least affordable state for homeowners, with a housing market far beyond what most residents can sustain. The average home value in Hawaii is over $824,000, pushing the typical monthly mortgage payment to nearly $4,900.

To stay within the standard affordability threshold, a household would need to earn around $197,000 per year - almost double the state’s median household income of $100,745. This creates the largest affordability gap in the USA, leaving many residents priced out of homeownership.

Several factors drive Hawaii’s high costs, including limited developable land, high construction and shipping expenses, as well as significant demand from out-of-state buyers seeking vacation or investment properties.

These pressures reflect a broader national pattern in which home prices and mortgage rates have risen faster than incomes, but in Hawaii the mismatch is especially stark. As a result, these structural limitations and economic pressures work together to push homeownership increasingly out of reach.

3. The 10 Least Affordable States for Homebuyers

1. Hawaii

Median home price: $824,731
Median household income: $100,745
Minimum income to afford median-priced home: $196,720
Affordability gap: -$95,975
Recommended vs. Actual Income (% Difference): -51.2%

2. California

Median home price: 761,003
Median household income: 100,149
Minimum income to afford median-priced home: $182,680
Affordability gap: -$82,531
Recommended vs. Actual Income (% Difference): -45.2%

3. Massachusetts

Average home price: $645,115
Median household income: $104,828
Minimum income to afford median-priced home: $157,200
Affordability gap: -$52,372
Recommended vs. Actual Income (% Difference): -33.33%

4. Washington

Average home price: $591,536
Median household income: $99,389
Minimum income to afford median-priced home: $145,400
Affordability gap: – $46,011
Recommended vs. Actual Income (% Difference): -31.64%

5. Montana

Average home price: $457,278
Median household income: $75,340
Minimum income to afford median-priced home: $111,320
Affordability gap: -$35,980
Recommended vs. Actual Income (% Difference): -32.32%

6. New York

Average home price: $505,608
Median household income: $85,820
Minimum income to afford median-priced home: $121,680
Affordability gap: -$35,860
Recommended vs. Actual Income (% Difference): -29.47%

7. New Jersey

Average home price: $559,826
Median household income: $104,294
Minimum income to afford median-priced home: $138,400
Affordability gap: -$34,106
Recommended vs. Actual Income (% Difference): -24.65%

8. Oregon

Average home price: $493,884
Median household income: $85,220
Minimum income to afford median-priced home: $119,200
Affordability gap: -$33,980
Recommended vs. Actual Income (% Difference): -28.48%

9. Colorado

Average home price: $535,778
Median household income: $97,113
Minimum income to afford median-priced home: $127,840
Affordability gap: -$30,727
Recommended vs. Actual Income (% Difference): -24%

10. Utah

Average home price: $530,173
Median household income: $96,658
Minimum income to afford median-priced home: $126,840
Affordability gap: $-30,182
Recommended vs. Actual Income (% Difference): -23.8%

4. The 10 Most Affordable States for Homebuyers

1. Iowa

Average home price: $227,232
Median household income: $75,501
Minimum income to afford median-priced home: $61,920
Affordability gap: $13,581
Recommended vs. Actual Income (% Difference): 21.93%

2. Mississippi

Average home price: $186,446
Median household income: $59,127
Minimum income to afford median-priced home: $45,680
Affordability gap: $13,447
Recommended vs. Actual Income (% Difference): 29.45%

3. Kansas

Average home price: $237,409
Median household income: $75,514
Minimum income to afford median-priced home: $64,040
Affordability gap: $11,474
Recommended vs. Actual Income (% Difference): 17.92%

4. West Virginia

Average home price: $169,372
Median household income: $60,789
Minimum income to afford median-priced home: $50,080
Affordability gap: $10,709
Recommended vs. Actual Income (% Difference): 21.39%

5. Illinois

Average home price: $279,761
Median household income: $83,211
Minimum income to afford median-priced home: $74,000
Affordability gap: $9,211
Recommended vs. Actual Income (% Difference): 12.45%

6. Ohio

Average home price: $237,530
Median household income: $72,212
Minimum income to afford median-priced home: $64,120
Affordability gap: $8,092
Recommended vs. Actual Income (% Difference): 12.62%

7. Oklahoma

Average home price: $214,563
Median household income: $66,148
Minimum income to afford median-priced home: $59,400
Affordability gap: $6,748
Recommended vs. Actual Income (% Difference): 11.36%

8. Nebraska

Average home price: $269,423
Median household income: $76,376
Minimum income to afford median-priced home: $71,800
Affordability gap: $4,576
Recommended vs. Actual Income (% Difference): 6.37%

9. Indiana

Average home price: $248,442
Median household income: $71,959
Minimum income to afford median-priced home: $67,400
Affordability gap: $4,559
Recommended vs. Actual Income (% Difference): 6.76%

10. North Dakota

Average home price: $278,677
Median household income: $77,871
Minimum income to afford median-priced home: $73,880
Affordability gap: $3,991
Recommended vs. Actual Income (% Difference): 5.4%

5. Looking For a Way to Bridge the Gap?

Struggling to make the numbers work? You’re not alone.

If rising home prices have pushed ownership just out of reach, one way many buyers are responding is by earning extra income alongside their main job. Not by taking on more hours, but by using smarter tools.

ProfitDuel helps you do exactly that through matched betting. Our platform shows you how to turn sportsbook and casino promotions into consistent, withdrawable profits. Money that can go toward a deposit, legal fees, or simply closing the affordability gap.

More than 500,000 people already use ProfitDuel to earn extra cash each month without gambling or guessing outcomes. It’s structured, guided, and designed to fit around real life. Start your trial today.